The “Market Competition and Consumer Choice Act;”
alters State regulation of competitive services provided by telecommunications
and CATV companies.

CURRENT VERSION OF TEXT

As reported by the Assembly Regulatory Oversight and
Gaming Committee on February 3, 2011, with amendments.

An Act concerning the regulation of competitive
services provided by telecommunications and cable television companies,
designated as the “Market Competition and Consumer Choice Act,” and amending R.S.48:2-13, P.L.1972, c.186 and P.L.2006,
83.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. R.S.48:2-13 is amended
to read as follows:

48:2-13. a. The board shall
have general supervision and regulation of and jurisdiction and control over
all public utilities as defined in this section and their property, property
rights, equipment, facilities and franchises so far as may be necessary for the
purpose of carrying out the provisions of this Title.

The term "public
utility" shall include every individual, copartnership, association,
corporation or joint stock company, their lessees, trustees or receivers
appointed by any court whatsoever, their successors, heirs or assigns, that now
or hereafter may own, operate, manage or control within this State any
railroad, street railway, traction railway, autobus, charter bus operation,
special bus operation, canal, express, subway, pipeline, gas, electricity
distribution, water, oil, sewer, solid waste collection, solid waste disposal,
telephone or telegraph system, plant or equipment for public use, under
privileges granted or hereafter to be granted by this State or by any political
subdivision thereof.

b. Nothing contained in
this Title shall extend the powers of the board to include any supervision and
regulation of, or jurisdiction and control over any vehicles engaged in
ridesharing arrangements with a maximum carrying capacity of not more than 15
passengers, including the driver, where the transportation of passengers is
incidental to the purpose of the driver or any vehicles engaged in the
transportation of passengers for hire in the manner and form commonly called
taxicab service unless such service becomes or is held out to be regular service
between stated termini; hotel buses used exclusively for the transportation of
hotel patrons to or from local railroad or other common carrier stations,
including local airports, or bus employed solely for transporting school
children and teachers, to and from school, or any autobus with a carrying
capacity of not more than 10 passengers now or hereafter operated under
municipal consent upon a route established wholly within the limits of a single
municipality or with a carrying capacity of not more than 20 passengers
operated under municipal consent upon a route established wholly within the
limits of not more than four contiguous municipalities within any county of the
fifth or sixth class, which route in either case does not in whole or in part
parallel upon the same street the line of any street railway or traction
railway or any other autobus route.

c. Except as provided in
section 7 of P.L.1995, c.101 (C.58:26-25), the board shall have no regulatory
authority over the parties to a contract negotiated between a public entity and
a private firm pursuant to P.L.1995, c.101 (C.58:26-19 et al.) in connection
with the performance of their respective obligations thereunder. Nothing
contained in this title shall extend the powers of the board to include any supervision
and regulation of, or jurisdiction and control over, any public-private
contract for the provision of water supply services established pursuant to
P.L.1995, c.101 (C.58:26-19 et al.).

d. Unless otherwise
specifically provided pursuant to P.L.1999, c.23 (C.48:3-49 et al.), all
services necessary for the transmission and distribution of electricity and
gas, including but not limited to safety, reliability, metering, meter reading
and billing, shall remain the jurisdiction of the Board of Public Utilities.
The board shall also maintain the necessary jurisdiction with regard to the
production of electricity and gas to assure the reliability of electricity and
gas supply to retail customers in the State as prescribed by the board or any
other federal or multi-jurisdictional agency responsible for reliability and
capacity in the State.

e. Notwithstanding the
provisions of subsection a. of this section, the board shall have the authority
to classify as regulated the sale of any thermal energy service by a
cogenerator or district heating system, for the purpose of providing heating or
cooling to a residential dwelling if, after notice and hearing, it determines
that the customer does not have sufficient space on its property to install an
alternative source of equivalent thermal energy, there is no contract governing
the provision of thermal energy service for the relevant period of time, and
that sufficient competition is no longer present, based upon consideration of
such factors as: ease of market entry; presence of other competitors; and the
availability of like or substitute services in the relevant geographic area.
Upon such a classification, the board may determine such rates for the thermal
energy service for the purpose of providing heating or cooling to a residential
dwelling as it finds to be consistent with the prevailing cost of alternative
sources of thermal energy in similar situations. The board, however, shall
continue to monitor the thermal energy service to such residential dwellings and,
whenever the board finds that the thermal energy service has again become
sufficiently competitive pursuant to the criteria listed above, the board shall
cease to regulate the sale or production of the service. The board shall not
have the authority to regulate the sale or production of steam or any other
form of thermal energy, including hot and chilled water, to non-residential
customers.

f. Nothing contained in
this Title shall extend the powers of the board to include supervision and
regulation of, or jurisdiction and control over, an entity engaged in the
provision or use of sewage effluent for the purpose of providing a cooling
medium to an end user or end users on a single site, which provision results in
the conservation of potable water which would otherwise have been used for such
purposes.

g. Except as provided
herein, the board shall have no regulatory authority over the parties to a
contract entered into between the governing body of a city of the first class
and a duly incorporated nonprofit association in connection with the
performance of their respective obligations thereunder when the governing body
of a city of the first class shall determine by ordinance that it is in the
public interest to contract with that duly incorporated nonprofit association
for the provision of water supply services as defined in subsection (16) of
section 15 of P.L.1971, c.198 (C.40A:11-15), or for the provision of wastewater
treatment services as defined in subsection (19) of section 15 of P.L.1971,
c.198 (C.40A:11-15), or the designing, financing, construction, operation, or
maintenance, or any combination thereof, of a water supply facility as defined
in subsection (16) of section 15 of P.L.1971, c.198 (C.40A:11-15) or a
wastewater treatment system as defined in subsection (19) of section 15 of
P.L.1971, c.198 (C.40A:11-15), or any component part or parts thereof,
including a water filtration system as defined in subsection (16) of section 15
of P.L.1971, c.198 (C.40A:11-15), upon approval of the contract pursuant to
the provisions of section 6 of P.L.2002, c.47 (C.58:28-7).

Notwithstanding any other
provision of P.L.2002, c.47 whenever the governing body of a city of the first
class enters into a contract with a duly incorporated nonprofit association for
the provision of water supply services as defined in subsection (16) of section
15 of P.L.1971, c.198 (C.40A:11-15), or the designing, financing, construction,
operation, or maintenance, or any combination thereof, of a water supply
facility as defined in subsection (16) of section 15 of P.L.1971, c.198
(C.40A:11-15), and that governing body operates water supply facilities as
authorized pursuant to the provisions of N.J.S.40A:31-4, which supply water to
customers within another local unit, the nonprofit association or governing
body shall be subject to the jurisdiction, rate regulation and control of the
Board of Public Utilities as provided in N.J.S.40A:31-23, to the extent the
nonprofit association or governing body supplies water to customers within that
other local unit.

h. Notwithstanding any
other provision of law, this chapter or chapters 3 and 17 of this Title, and
any regulation, order, or settlement, or portion thereof, adopted pursuant to
such chapters, shall not apply to any public utility, as defined pursuant to
subsection a. of this section, that offers telephone service in any and all
exchanges where the public utility certifies to the office of the Secretary of
State that there are at least two providers offering voice services to retail
residential customers in that exchange or those exchanges, including any entity
providing voice telephone service using any technology, including, but not
limited to, a provider of “commercial mobile service” as defined in subsection
(d) of section 332 of the Communications Act of 1934 (47 U.S.C. s.332(d)), a
provider of Voice over Internet protocol service, as defined in section 3 of
P.L.2007, c.195 (C.48:17-34) or, for an interexchange telecommunications carrier,
as defined in section 2 of P.L.1991, c.428 (C.48:2-21.17), two such providers
operating in its service territory. However, nothing in this subsection
affects:

(1) the applicability of,
including the utility’s rights and obligations under any authority of the board
to implement and enforce, articles 3, 3A, 3B, 3C and 4 of chapter 3 of Title 48
of the Revised Statutes, and R.S.48:2-37, R.S.48:17-8, section 58 of P.L.1962,
c.198 (C.48:17-9.1), R.S.48:17-19, and R.S.48:17-20;

(2) the applicability or
enforcement of consumer protection and unfair or deceptive trade practices laws
that apply generally to the conduct of business in the State;

(3) the applicability of,
including any authority of the board to implement and enforce, the provisions
of the "Underground Facility Protection Act," P.L.1994, c.118 (C.48:2-73
et seq.);

(4)1[the board’s]board1authority to
implement and enforce any telephone relay service or enhanced 9-1-1 funding or operational requirements;

(5)1[the board’s]board1authority, including
that which existed prior to the enactment of section 1 of P.L. , c.
(C. ) (pending before the Legislature as this bill) to implement or
enforce or to resolve disputes regarding any law, rule, regulation, order, or
board-approved settlement governing the interconnection, wholesale services, or
other intercarrier rights, duties, or obligations of any party, and such
party’s successors and assigns, including any authority of the board to enforce
any rights, duties, or obligations under 47 U.S.C. s.251 or 47 U.S.C. s.252;

(6) the applicability of article
5, chapter 17 of Title 48 of the Revised Statutes;

(7)1[the board’s]board1jurisdiction
over intrastate switched access rates, and the terms and conditions of service,
including requirements for the filing of switched access tariffs, subject to
oversight and enforcement by the board;

(8) the ability of a
public utility, in its discretion, to otherwise file tariffs with the board;

(9) the discounts
available under the federal Lifeline and Link-Up programs, and any technology
may be used to satisfy Lifeline obligations without otherwise subjecting
Lifeline services to any greater regulation than non-Lifeline services provided
using that technology; or

(10) the definition of an
“incumbent local exchange carrier” under 47 U.S.C. s.251(h).

i. A public utility,
as defined in subsection a. of this section, may offer telephone exchange
service by filing a registration statement with the board which is limited to
providing the name, address, and telephone number of the company’s primary
business office in this State.

(cf: P.L.2002, c.47, s.10)

2. Section 9 of P.L.1972,
c.186 (C.48:5A-9) is amended to read as follows:

9. The board, which is
empowered pursuant to P.L.1972, c.186 (C.48:5A-1 et seq.) to be the local
franchising authority in this State, and the director under the supervision of
the board, shall have full right, power, authority and jurisdiction to:

a. Receive or initiate
complaints of the alleged violation of any of the provisions of P.L.1972, c.186
(C.48:5A-1 et seq.) or of any of the rules and regulations made pursuant to
P.L.1972, c.186 (C.48:5A-1 et seq.) or of the terms and conditions of any
municipal consent or franchise granted pursuant to P.L.1972, c.186 (C.48:5A-1
et seq.); and for this purpose and all other purposes necessary to enable the
director to administer the duties of the office as prescribed by law may hold
hearings and shall have power to subpoena witnesses and compel their
attendance, administer oaths and require the production for examination of any
books or papers relating to any matter under investigation at any such hearing;

b. Supervise and regulate
every CATV company operating within this State and its property, property
rights, equipment, facilities, contracts, certificates and franchises so far as
may be necessary to carry out the purposes of P.L.1972, c.186 (C.48:5A-1 et
seq.), and to do all things, whether herein specifically designated or in
addition thereto, which are necessary or convenient in the exercise of such
power and jurisdiction;

c. Institute all
proceedings and investigations, hear all complaints, issue all process and
orders, and render all decisions necessary to enforce the provisions of
P.L.1972, c.186 (C.48:5A-1 et seq.), of the rules and regulations adopted
thereunder, or of any municipal consents issued pursuant to P.L.1972, c.186
(C.48:5A-1 et seq.);

d. Institute, or intervene
as a party in, any action in any court of competent jurisdiction seeking
mandamus, injunctive or other relief to compel compliance with any provision of
P.L.1972, c.186 (C.48:5A-1 et seq.), of any rule, regulation or order adopted
thereunder or of any municipal consent or franchise issued thereunder, or to
restrain or otherwise prevent or prohibit any illegal or unauthorized conduct
in connection therewith.

e. Notwithstanding any
other provision of law, the requirements of this chapter, and any regulation,
order, or settlement adopted pursuant thereto, shall not apply to a cable
television company in any competitive franchise area and the rates, service,
property, and operations of such cable television company shall not be subject
to board regulation, except that nothing in this subsection affects:

(1) the board’s authority
to issue or renew individual certificates of authority or system-wide
franchises pursuant to sections 15 through 19 of P.L.1972, c.186 (C.48:5A-15
through C.48:5A-19); provided, however, that the board’s authority governing
the renewal of a system-wide franchise in any and all competitive franchise
areas shall be limited by this subsection and not expanded;

(2) the rights of a cable
television company or telecommunications provider to occupy public rights of
way as those rights existed as of the effective date of P.L. , c.
(C. ) (pending before the Legislature as this bill), including, but not
limited to, the rights reflected in sections 15 and 20 of P.L.1972, c.186
(C.48:5A-15 and C.48:5A-20);

(3) the obligation to
obtain municipal consents, as pursuant to section 22 of P.L.1972, c.186
(C.48:5A-22);

(4) the rights of
municipalities to manage their rights of way in a non-discriminatory and
competitively neutral manner, consistent with federal law;

(5) a CATV company’s
payment obligations to municipalities pursuant to section 30 of P.L.1972, c.186
(C.48:5A-30) and subject to the provisions of subsection a. of section 69 of P.L.1997,
c.162 (C.54:30A-124);

(7) the right of a cable
television company to convert to a system-wide franchise pursuant to section 19
of P.L.2006, c.83 (C.48:5A-25.1);

(8) the rights of a cable
television company to lease, rent, or otherwise have made available facilities
or rights-of-way, including pole space pursuant to sections 20 and 21 of
P.L.1972, c.186 (C.48:5A-20 and C.48:5A-21) and any board regulation, order,
and decision with respect thereto;

(9) the rights of a cable
television company with regard to liability for use of its facilities as established
in section 50 of P.L.1972, c.186 (C.48:5A-50);1[or]1

(10) the access rights of a
cable television company pursuant to section 49 of P.L.1972, c.186 (C.48:5A-49)
and any board regulation, order, and decision with respect thereto1;

(11) the obligations of a
cable television company pursuant to paragraphs (1) and (2) of subsection a. of
section 20 of P.L.2006, c.83 (C.48:5A-25.2);

(12) with regard only to
applications for a system-wide franchise, a commitment to provide, without
charge, a standard installation within 150 feet of the cable television company’s
active plant, one service outlet activated for basic service to all public
schools, all municipal public libraries, and the municipal fire headquarters,
the municipal police headquarters, and one municipal building designated by the
municipality; or

(13) with regard only to
applications for a system-wide franchise, a commitment by a cable television
company to provide, without charge, free Internet service, through one service
outlet activated for basic service to all public schools, all municipal public
libraries, and the municipal fire headquarters, the municipal police
headquarters, and one municipal building designated by the municipality1.

For the purposes of this
subsection, a “competitive franchise area” means a franchise area where a cable
television company certifies to the office of the Secretary of State that there
are at least two “multichannel video programming distributors,” as defined in subsection
(d) of 47 C.F.R. s.76.905, offering video programming in that franchise area,
or portions thereof.

(cf: P.L.2006, c.83, s.6)

3. Section 16 of P.L.1972,
c.186 (C.48:5A-16) is amended to read as follows:

16. a. Any entity that seeks
to provide cable service in this State after the effective date of [P.L.2006, c.83
(C.48:5A-25.1 et al.)]P.L. , c. (C. ) (pending before the Legislature as this bill)
may apply for either individual certificates of approval or a system-wide
franchise. The application for a certificate of approval or a system-wide
franchise from the board shall be in writing.

b. (1) If the application
is for an individual certificate of approval, it shall have attached thereto
the municipal consents required under section 22 of P.L.1972, c.186
(C.48:5A-22), except that a CATV company which is authorized under section 25
of P.L.1972, c.186 (C.48:5A-25) to continue operations after the expiration of
a municipal consent and pending municipal action upon application made for
renewal or reissuance of such consent may in lieu of such municipal consent
attach to its application a statement regarding its authorization to continue
operations under the provisions of section 25 of P.L.1972, c.186 (C.48:5A-25);
and shall contain such other information as the director may from time to time
prescribe by duly promulgated rule, regulation or order. Each such application
shall be accompanied by a filing fee of $200.

(2) Upon receipt of an
application for a certificate of approval, the board shall review the
application and shall, within 30 days of the receipt thereof, either issue the
certificate of approval applied for or order the director to schedule a hearing
upon the application. No application shall be denied without a hearing
thereon. In determining whether a certificate of approval should be issued,
the board shall consider only the requirements of [sections]section 17 and subsections a. through f.1, i., and l.1of section
28 of P.L.1972, c.186 (C.48:5A-17 and C.48:5A-28).

c. (Deleted by amendment,
P.L.2006, c.83).

d. If the application is
for a system-wide franchise, it shall be accompanied by a filing fee of $1,000,
and shall specify the information required in subsections a. through f.1, i., and l.1of section
28 of P.L.1972, c.186 (C.48:5A-28).

e. A hearing held pursuant
to subsection b. of this section shall be held not later than the sixtieth day
following the date of receipt of the application; it may be adjourned from time
to time, but not to a date later than the sixtieth day following the date on
which it commenced, except with the consent of the applicant. If such hearing
is held, the director shall within 60 days after the conclusion thereof,
transmit his findings of fact and recommendations to the board, which shall
either issue or deny the certificate for which application was made, or may
issue a certificate with such limitations and conditions as the public interest
may require. The board shall transmit notice of its decision to the applicant.

f. Upon receipt of an
application for a system-wide franchise submitted pursuant to subsection a. of
this section, the board shall review the application and shall, within 45 days
of the receipt thereof, schedule two public hearings to be held in different
geographical areas of the State during the 45-day review period to consider the
application. In determining whether a system-wide franchise should be issued,
the board shall consider only the requirements of [sections]section 17 and subsections a. through f.1, i., and l.1of section 28
of P.L.1972, c.186 (C.48:5A-17 and C.48:5A-28). On or before the expiration of
the 45-day period, the board shall issue an order in writing approving the
application if the applicant has complied with the requirements for a
system-wide franchise, or the board shall disapprove the application in writing
citing the reasons for disapproval if the board determines that the application
for a system-wide franchise does not comply with the requirements for a
system-wide franchise. If, during the 45-day review period, the board
determines to disapprove the application, the board shall schedule a meeting
with the applicant to explain to the applicant the reasons for the board's
disapproval and to allow the applicant to question the board concerning the
reasons for the board's disapproval. Such meeting shall be scheduled no later
than two weeks following the expiration of the 45-day review period required by
this subsection. The applicant shall have 30 days following the date of the
meeting with the board required by this subsection to file an appeal of the
board's decision. The board shall thereafter schedule an administrative
hearing not later than the thirtieth day following the date of the filing of
the applicant's appeal in order to consider the applicant's appeal. The board
shall issue a final decision in written form on the applicant's appeal not
later than the sixtieth day following the administrative hearing, required by
this subsection, on the applicant's appeal.

(cf: P.L.2006, c.83, s.12)

4. Section 19 of P.L.1972,
c.186 (C.48:5A-19) is amended to read as follows:

19. a. A certificate of
approval issued by the board shall be nontransferable, except by consent of the
board and shall specify the area to which it applies and the municipal consents
upon which it is based. A certificate of approval issued by the board shall be
valid for 15 years from the date of issuance or 20 years from the date of
issuance if the board certifies that a CATV company has implemented an open
video system in accordance with 47 U.S.C. s.573 within one year after receiving
a municipal consent, or until the expiration, revocation, termination or
renegotiation of any municipal consent upon which it is based, whichever is
sooner. But amendment of the terms of a municipal consent by mutual consent
and in conformity with the procedures specified in P.L.1972, c.186 (C.48:5A-1
et seq.) during the term for which it was issued shall not require the issuance
of a new certificate of approval. A CATV company holding a certificate based
upon a municipal consent with a provision for automatic renewal for a term not
exceeding 10 years beyond its expiration date or 15 years beyond its expiration
date if the board certifies that the CATV company has implemented an open video
system in accordance with 47 U.S.C. s.573, shall be entitled to automatic
reissuance of a certificate for such term, unless it shall forfeit such
entitlement by violation of any terms of P.L.1972, c.186 (C.48:5A-1 et seq.),
regulations issued pursuant thereto, or by the terms of the municipal consent.

b. A system-wide franchise
issued by the board shall be nontransferable, except by consent of the board,
and shall specify the area to which it applies. A system-wide franchise issued
by the board shall be valid for seven years from the date of issuance. A
system-wide franchise issued pursuant to P.L.1972, c.186 (C.48:5A-1 et seq.)
shall not require: (1) a CATV company to operate outside of the areas in
which the CATV company either has plant or equipment in use for the provision
of any consumer video, cable or telecommunications service, or has proposed to
place into use such plant or equipment for the provision of such services; or
(2) a CATV company with municipal consents issued prior to the effective date
of P.L.2006, c.83 (C.48:5A-25.1 et al.) to operate outside of the areas covered
by such consents. [Renewal
of a system-wide franchise shall be valid for a period of seven years from the
date of the renewal issuance, and the board shall establish rules governing the
renewal of a system-wide franchise.]

c. Renewal of a
system-wide franchise shall be valid for a period of seven years from the date
of the renewal issuance. Notwithstanding anything to the contrary herein, to
the extent that the system-wide franchisee is operating in a competitive
franchise area, as defined in subsection e. of section 6 of P.L.2006, c.83
(C.48:5A-9), regardless of whether such system-wide franchise was obtained pursuant
to section 16 of P.L.1972, c.186 (C.48:5A-16) or section 19 of P.L.2006, c.83
(C.48:5A-25.1), the franchise shall be renewed automatically for an additional
seven years upon the submission of written notice to the board by the
franchisee. Such notice shall identify the franchise area that is subject to
the renewal, attach a copy of the expired or expiring franchise to be renewed,
and certify that the subject area is a competitive franchise area. The renewal
shall be effective upon the submission of the notice to the board. The board
shall have no authority to establish rules governing this renewal provision as
it relates to competitive franchise areas.

(cf: P.L.2006, c.83, s.15)

5. Section 19 of P.L.2006,
c.83 (C.48:5A-25.1) is amended to read as follows:

19. a. Municipal consents and
certificates of approval for applications to provide cable television services
in a municipality issued prior to the effective date of P.L.2006, c.83
(C.48:5A-25.1 et al.) shall remain in effect until such time as they may expire
or until such time as the cable television company is granted a renewal of the
franchise as a municipal franchise or converts the franchise to a system-wide
franchise. Except as may otherwise be provided by subsection b. of this
section and section 30 of P.L.1972, c.186 (C.48:5A-30), both the municipality
and the cable television company shall be bound by the terms of the municipal
consents and certificates of approval until such time as the municipal consents
and certificates of approval have been converted into a system-wide franchise.
A cable television company with a municipal franchise or franchises issued
prior to the effective date of P.L.2006, c.83 (C.48:5A-25.1 et al.) may, if it
wishes, automatically convert any or all such franchise or franchises into a
system-wide franchise upon notice to the board and the affected municipality,
but without the need for the consent of either the board or the affected
municipality and without regard to the requirements of P.L.2006, c.83
(C.48:5A-25.1 et al.) applicable to applications for such a franchise [, except that the commitments required pursuant to subsections h. through
n. of section 28 of P.L.1972, c.186 (C.48:5A-28) shall be applicable to any
or all such system-wide franchises and any failure of a CATV company to abide
by or conform its practices to such commitments shall be considered a violation
of the system-wide franchise and the board may enforce these provisions through
the imposition of monetary penalties under section 51 of P.L.1972, c.186
(C.48:5A-51), or the suspension or revocation of the system-wide franchise, or
it may seek to renew such franchise or franchises as a municipal franchise or
franchises pursuant to the provisions of P.L.1972, c.186 (C.48:5A-1 et seq.)]1, except that
the commitments required pursuant to subsections i. and l. of section 28 of
P.L.1972, c.186 (C.48:5A-28) shall be applicable to any or all such system-wide
franchises and any failure of a CATV company to abide by or conform its
practices to such commitments in subsections i. and l. of section 28 of
P.L.1972, c.186 shall be considered a violation of the system-wide franchise
and the board may enforce these provisions through the imposition of monetary
penalties under section 51 of P.L.1972, c.186 (C.48:5A-51), or the suspension
or revocation of the system-wide franchise, or it may seek to renew such
franchise or franchises as a municipal franchise or franchises pursuant to the
provisions of P.L.1972, c.186 (C.48:5A-1 et seq.)1 . Such conversion
need not take place with respect to all municipalities at the same time, but
rather the cable television company may convert additional municipal franchises
and add affected municipalities to the service area covered by such system-wide
franchise at any time during the term of the system-wide franchise.

b. If a cable television
company is granted a system-wide franchise by the board pursuant to the
provisions of P.L.2006, c.83 (C.48:5A-25.1 et al.), the company shall be able
thereafter to be issued a municipal franchise or franchises and the renewal of
a municipal franchise or franchises which had been issued prior to the
effective date of P.L.2006, c.83 (C.48:5A-25.1 et al.). Nothing herein shall
preclude a municipality from enforcing its right-of-way management powers on a
reasonable and non-discriminatory basis, except that such powers shall not
include the authority to impose any fees, taxes, assessments or charges of any
nature for the use of public rights-of-way by a CATV company except as
expressly provided by P.L.2006, c.83 (C.48:5A-25.1 et al.). The provisions of
this subsection shall not be construed to relieve any cable television company
issued a system-wide franchise of its obligations to meet the requirements of
section 20 of P.L.2006, c.83 (C.48:5A-25.2).

(cf: P.L.2006, c.83, s.19)

6. Section 30 of P.L.1972,
c.186 (C.48:5A-30) is amended to read as follows:

30. a. Except as provided in
subsection d. of this section, [in
consideration of a municipal consent issued under P.L.1972, c.186 (C.48:5A-1 et
seq.), the]a
CATV company to which [the]a municipal
consent is issued or a CATV company that operates under a system wide
franchise pursuant to section 19 of P.L.2006, c.83 (C.48:5A-25.1), shall
annually pay to each municipality served by the CATV company, in lieu of all
other franchise taxes and municipal license fees, a sum equal to two percent of
the gross revenues from all recurring charges in the nature of subscription
fees paid by subscribers to its cable television reception service in such
municipality. Each CATV company shall, on or before the twenty-fifth day of
January each year, file with the chief fiscal officer of each municipality in
the territory in which it is certificated to operate a statement, verified by
oath, showing the gross receipts from such charges, and shall at the same time
pay thereon to the chief fiscal officer of the municipality the two percent
charge hereby imposed on those receipts as a yearly franchise revenue for the
use of the streets.

b. Any CATV company which,
pursuant to any agreement in effect prior to December 15, 1972, paid or had
agreed to pay to any municipality in fees or other charges in consideration of
the consent of such municipality to the use of streets, alleys and public
places thereof for the installation and operation of a CATV system, or similar
consideration, a sum or rate exceeding that which it would pay pursuant to this
section shall, in applying for a certificate of approval show to the
satisfaction of the board that the reduction in such payments effectuated by
the application of this section shall be reflected in (1) commensurate
reduction of rates to subscribers to cable television reception service or (2)
commensurate improvements in such service made available to such subscribers.
If the board is not so satisfied it shall amend, as excessive, the rate
schedule contained in the application so that such rates shall be reduced to a
degree commensurate with the reduction in payments by the CATV company to the
municipality.

c. [In consideration of a
municipal consent issued to a CATV company pursuant to P.L.1972, c.186
(C.48:5A-1 et seq.), a municipality may petition the board for permission to
charge a yearly franchise fee exceeding that prescribed in subsection a. of
this section. A municipal consent setting such a fee in excess of the amount
prescribed in subsection a. of this section shall be deemed to constitute such
a petition when filed with the board pursuant to section 16 of P.L.1972, c.186
(C.48:5A-16) as part of an application for a certificate of approval. A
hearing pursuant to the provisions of section 16 of P.L.1972, c.186
(C.48:5A-16) shall be held upon any application containing such petition, or
upon any such petition separately filed, and at such hearing full notice and
opportunity to be heard upon the matter shall be accorded to both the
municipality and any CATV company affected thereby. The board after such
hearing and upon recommendation of the director may grant such petition and
allow the imposition of a franchise revenue exceeding that prescribed in
subsection a. of this section, and at a rate to be prescribed by the board,
when the board is satisfied that the same is warranted by the expenses to the
municipality with respect to the regulation or supervision within its territory
of cable television, or any other expenses caused by the existence and
operation within its territory of cable television service.](Deleted by amendment,
P.L. , c. ) (pending before the Legislature as this
bill)

d. In consideration of a
system-wide franchise issued under P.L.1972, c.186 (C.48:5A-1 et seq.) , but
not in the case of a CATV company operating under a system-wide franchise
pursuant to section 19 of P.L.2006, c.83 (C.48:5A-25.1), once the CATV
company receiving such system-wide franchise serves one or more residents
within a municipality, then such CATV company shall pay the fees as provided in
paragraphs (1) and (2) of this subsection, and once such CATV company files a
certification with the board certifying that the company is capable of serving
60 percent or more of the households within such municipality that are served
by a CATV company that has received a municipal consent issued under P.L.1972,
c.186 (C.48:5A-1 et seq.) and the board approves such certification, [both] the CATV company
receiving such system-wide franchise and a CATV company in such municipality
that has received a municipal consent issued under P.L.1972, c.186 (C.48:5A-1
et seq.) or is operating under a system-wide franchise pursuant to section
19 of P.L.2006, c.83 (C.48:5A-25.1), shall annually pay:

(1) to such municipality
served by the CATV company, in lieu of all other franchise taxes and municipal
license fees, and for the purpose of providing local property tax relief, a sum
equal to three and one half percent of the gross revenues, as this term is
defined in section 3 of P.L.1972, c.186 (C.48:5A-3), that the company derives
during the calendar year from cable television service charges or fees paid by
subscribers in the municipality to the company; and

(2) to the State Treasurer,
on behalf of persons residing in the municipality who are eligible for the
"Pharmaceutical Assistance to the Aged and Disabled" program
established pursuant to P.L.1975, c.194 (C.30:4D-20 et seq.), a sum equal to
the amount that such eligible persons pay as charges or fees to the company for
providing basic cable service to such persons, provided that the yearly total
of such payments from the company shall not exceed one half of one percent of
the gross revenues, as this term is defined in section 3 of P.L.1972, c.186
(C.48:5A-3), that the company derives during the calendar year from cable
television service charges or fees paid by subscribers in the municipality to
the company. The State Treasurer shall establish a "CATV Universal Access
Fund," for the purposes described in this paragraph.

e. Each CATV company
shall, on or before the twenty-fifth day of January each year, file with the
chief fiscal officer of each municipality in the territory in which it is
certificated to operate a statement, verified by oath, showing the gross
receipts from the charges described in subsection d. of this section, and shall
at the same time pay thereon: (1) to the chief fiscal officer of the
municipality the three and one-half percent charge hereby imposed on those
receipts as a yearly franchise revenue for the purpose of providing local
property tax relief; and (2) to the State Treasurer, for deposit into the
"CATV Universal Access Fund," for the purpose of providing payment to
eligible subscribers residing in the municipality an amount equal to the
charges or fees paid by such subscribers during the preceding calendar year to
the company for providing basic cable service to such subscribers, provided
that the yearly total of such payments by the company to such subscribers does
not exceed the one half of one percent charge hereby imposed.

f. For the purposes of
this section, in the case of a cable service that may be bundled or integrated
functionally with other services, capabilities or applications, the fee
required by this section shall be applied only to the gross revenue from
charges or fees derived from revenues attributable to the provision of cable
service, as reflected on the books and records of the holder in accordance with
Federal Communications Commission rules, regulations, standards or orders.

g. For the purposes of
this section, within 45 days of the date of receipt of the certification filed
pursuant to subsection d. of this section, the board shall issue an order in
writing approving the certification, or the board shall disapprove the
certification in writing citing the reasons for disapproval. If the board
fails to either approve or disapprove the certification within the 45-day
period, the certification shall be deemed to be approved. If, during the
45-day period, the board determines to disapprove the certification, the board
shall schedule a meeting with the CATV company to explain to the CATV company
the reasons for the board's disapproval and to allow the CATV company to
question the board concerning the reasons for the board's disapproval. Such
meeting shall be scheduled no later than two weeks following the expiration of the
45-day period required by this subsection. The CATV company shall have 30 days
following the date of the meeting with the board required by this subsection to
file an appeal of the board's decision. The board shall thereafter schedule an
administrative hearing not later than the thirtieth day following the date of
the filing of the CATV company's appeal in order to consider the CATV company's
appeal. The board shall issue a final decision in written form on the CATV
company's appeal not later than the sixtieth day following the administrative
hearing, required by this subsection, on the CATV company's appeal.

(cf: P.L.2006, c.83, s.27)

17. (New
section) Within two years after the effective date of P.L. , c. (C.
) (pending before the Legislature as this bill), the Board of Public Utilities
shall undertake a review and study to determine whether an adequate level of
competition and consumer choice exists in the telecommunications and cable
television marketplace. The board shall provide a copy of its review and study
to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1),
to the Legislature, within two years after the effective date of P.L. , c. (C.
) (pending before the Legislature as this bill).1